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Wednesday, August 31, 2011

Tiger Woods was recently named as a captain's pick for the Presidents Cup after suffering from injuries to his left knee and Achilles tendon, and going four months without completing a tournament. Woods is still going strong, and so are several of the companies that support the sport of golf.

There are a few pure plays and semi pure plays in the golfing industry? WallStreetNewsNetwork.com has come up with over ten companies involved in golf courses, golf clubs, and golf equipment on its Golf Stocks list which is available for free.

There is the noted Callaway Golf Co. (ELY), which makes and sells golf clubs and and golf balls, including the Big Bertha line, the RAZR, and the Diablo Octane golf clubs. The stock trades at 21.6 times forward earnings and sports a small yield of 0.7%.

Golfsmith International Holdings (GOLF) is a retailer of golf and tennis equipment and trades at 7.4 times forward earnings, and currently doesn't pay a dividend.

Here's an obscure golf connection. Fortune Brands (FO) the liquor company which offers such brands as Jim Beam, Canadian Club, and Harveys, also has a division that makes and market golf balls, golf clubs, golf shoes & golf gloves. The stock has a current price to earnings ratio of 14.9, a forward PE of 16.5, and sports a yield of 1.3%.

For a free list of golf stocks, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Tuesday, August 30, 2011

Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

Monday, August 29, 2011

There's no business like show business. There are many aspects to entertainment: amusement parks, motion picture production companies, theater chains, television, sports, and many other areas. Show business has always been considered inflation-proof. When people can't afford to travel to Europe or on expensive cruises, they go to the movies, an amusement park within driving distance, or just a staycation, sitting at home watching TV.

There are numerous opportunities to invest in this sector, and many of them that pay dividends in excess of 2.5%. WallStreetNewsNetwork.com recently updated its free spreadsheet database of all the high yielding entertainment stocks and notes that pay dividends, with yields approaching as much as 7%.

One example is Cedar Fair LP (FUN), with the memorable stock ticker symbol. The stock yields 2.7%, and has been paying quarterly dividends since 1988. The dividend rate was recently increased by 11.8% over last years payout rate. Revenues for the latest quarter were up 3.2%, however the company recently generated negative earnings. Since the company is structured as a limited partnership, a K-1 will be issued instead of a 1099, so more tax paperwork involved.

Regal Entertainment Group (RGC) operates a chain of movie theaters throughout the United States in mid-sized metropolitan markets and the suburbs. The company has a forward price to earnings ratio of 19.3, and pays a decent dividend of 6.7%. Earnings for the latest quarter were up an incredible 625%.

Another motion picture chain that has theaters in North and South America is Cinemark Holdings Inc. (CNK), with a forward PE of 12.6, and an extremely generous yield of 4.2%. Earnings for the latest quarter were up over 1.8%.

You can check out a list of more than a dozen entertainment stocks and notes with yields above 2%, six of which yield more than 6%, all of which can be found at wsnn.com. Some of the stocks on the list are senior notes, which trade like preferred stocks.

Disclosure: Author did not own any of the above at the time the article was written.

Saturday, August 27, 2011

If you were to find a stock that has been around since 1898, pays a yield of 5.8%, has paid dividends quarterly since 1995, has increased its dividend in six out of the last sixteen years, trades at 10.5 times earnings, and just reported a 4.8% increase in revenues, you might think that this is one of the blue chip large cap stocks that is a member of the S&P 500. You would be wrong.

The company is not a large cap, nor even a mid cap stock. This stock is selling within a couple dollars per share of its 52 week low at less than ten dollars a share, closing at 9.44 on Friday. So what is this company? It is the Minnesota based company Hickory Tech Corp. (HTCO). The company is in the business of providing integrated data services, such as fiber, data and Internet, voice and voice over Internet protocol, along with distribution of telecommunications and data processing equipment. It also offers local telephone, long distance, and directory assistance services. The company has regional fiber network spanning more than 2,750 route miles serving Minnesota, Iowa, North Dakota, South Dakota and Wisconsin. Net debt position improved $5 million for the quarter and $15 million year-to-date. Equipment and broadband revenue increased 12 percent.

Amazingly, there are lots of low priced stocks with upside potential that pay dividends, and many have fairly decent yields ranging from 3% to 6%. I gave a presentation at the MoneyShow a few weeks ago about high dividend stocks, and included a discussion of speculative income stocks. Here are a few more.

Psychemedics (PMD) is an interesting company that pays a yield of 6.1% based on its current price of 7.94. It is a provider of testing services for the detection of abused substances using analysis of samples of hair. The company's services are offered to employers, law enforcement agencies, schools, and nosy parents.

This Massachusetts company was founded in 1985 and has paid quarterly dividends since 1997. The stock trades at 13 times earnings and reported quarterly income growth of 25.2% on a 14.9% rise in revenues. The company is debt free and has $4.6 million in cash.

Lincoln Educational Services (LINC) is in the private education business and owns the Lincoln Technical Institute, Lincoln College of Technology, Lincoln College of New England, Nashville Auto-Diesel College, Southwestern College, Clemens College, and Euphoria Institute of Beauty Arts and Sciences. The stock yields 10.5% based on its current closing price of 9.55. The company just started paying quarterly dividends in 2010. This company has suffered along with all the other private college businesses due to government crackdown on promises made to potential students and related issues. The company reported a 62.6% drop in quarterly earnings. The company was founded in 1946 and is based in New Jersey.

Tal International (TAL), founded in 1963, is in the business of leasing intermodal containers, and yields 7.7% based on the current stock price of 28.37. Dividends have increased every quarter for the last six quarters. The stock trades at a price to earnings ratio of 8.7. Earnings for the latest quarter increased 398% (albeit from a very low amount last year) on an earnings increase of 37.6%.

Have you seen those guys that advertise on TV telling you that you can have $2500 in your checking account tomorrow? QC Holdings (QCCO) is one of the companies involved in payday loans. The stock, which closed at 3.88 on Friday, yields 5%, and has been paying quarterly dividends for five years. The stock trades at 6.6 times earnings. Latest quarterly earnings were down substantially, over 98%.

For free lists of other high yield stocks, check out WallStreetNewsNetwork.com.
Disclosure: Author did not own any of the above at the time the article was written.

Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

Friday, August 26, 2011

Republican U.S. presidential candidate Michele Bachmann said that gas prices would drop below $2 per gallon if she she is elected. If that happens, there isn't much hope for ethanol as a substitute fuel. The price of crude oil has been trading around $85 a barrel for the last few days. However, with the tragedy of Hurricane Irene, concerns abound about oil production being affected causing rising prices. This could lead to an increase in the interest in and use of ethanol. Fortunately there are over 20 ethanol related stocks with more than a dozen paying dividends according to WallStreetNewsNetwork.com.

The number one ethanol stock that comes to most investors' minds is Archer Daniels Midland (ADM), which has a corn processing division that produces ethanol from corn. The stock trades at 8.2 times forward earnings and provides investors with a yield of 2.3%. Revenues were up a strong 46.6% for the latest quarter year-over-year, however earnings were down 14.6%.

The Andersons (ANDE), an Ohio based company, is involved in the management of ethanol production facilities and grain and ethanol trading. The stock has a forward price to earnings ratio of 8.9 and a yield of 1.2%. Earnings for the latest quarter were up an incredible 79.7% on a 65% rise in revenues.

Bunge Ltd. (BG) is a White Plains, New York company founded in 1818 that produces ethanol from sugarcane. The stock has a forward P/E of 9 and a yield of 1.7%. Revenues for the latest quarter were up 32% but earnings were down 82%.

A free list of stocks related to ethanol in some way, which can be downloaded, updated and sorted, can be found at WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

This is a YouTube blockbuster hit about the United States economy. The rapper/comedian Remy Munasifi raps:
"$14 trillion in debt, but yo we ain't go no qualms.
Dropping $100 bills and million dollar bombs.
Social Security surplus? Oh guess what? It's gone!
I got my hands on everything like Dominique Strauss-Kahn..."

Thursday, August 25, 2011

According to Paul Krugman, Princeton University economist, professor at the London School of Economics, and New York Times columnist, an alien invasion from outer space could curse America's economic woes. His mention of this appears about two thirds of the way through this short video. Krugman won the Nobel Memorial Prize in Economics in 2008.

Over 20 stocks have increased dividends more than 30 years in a row, more than half a dozen have increased dividends in excess of 40 years, and two companies have raised dividends for more than 50 years. Investors who are looking for dividend payers for a long term hold should take a look at some of these stocks.

According to WallStreetNewsNetwork.com, which has posted a list of these stocks that have increased dividends for over 30 years in a row, and several of them are in the Dow Jones Industrial Average, such as Wal-Mart Stores (WMT) which has increased dividends for over 35 years in a row, and yields 2.9%. Quarterly earnings for the company were up 5.7% on a 5.4% increase in revenues. It trades at 10.8 times current earnings.

The consumer products company Clorox Co (CLX) is another long term dividend increaser that pays a decent dividend of 3.5%. The stock has had dividend increases for over 30 years, and currently trades at 14.9 times forward earnings. Earnings and revenues were off slightly for the latest quarter.

Another high yielder is Consolidated Edison (ED) paying 4.5%, and has a history of bumping up its dividend for 36 years in a row. The forward price to earnings ratio is 15.2. For the latesst quarter, revenues were flat but earnings were down 9.8%.

To see the entire list of dividend increasers, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above stocks at the time the article was written.

Wednesday, August 24, 2011

Casino gaming may be experiencing major growth in the state of Massachusetts. a tentative agreement to expand gambling was reached by the state's Senate, House and Governor, which would allow three stand-alone casinos. Slot machine manufacturers should benefit, along with major casino companies that may participate, such as Las Vegas Sands (LVS).

The company trades at 18 times forward earnings, had quarterly revenue growth of 47%, and an outrageous 882% increase in quarterly earnings year over year. Of course, the percentage increase is based on very low earnings for last year. Although the company carries $10 billion in debt, it does have $3.5 billion in cash. Business has been booming for Las Vegas Sands in Macau.

Other casino stocks ideas can be found on the free list at WallStreetNewsNetwork.com, with over 20 listings.

WMS Industries Inc. (WMS) is a way to play the supplier industry. It develops, makes, and markets gaming machines and video lottery terminals, including slot machines and video poker gaming machines. The stock sports a forward price to earnings ratio of 10.2. Jefferies initiated coverage on the stock last year and gives it a Buy rating. The debt free company has $90 million in cash.

Wynn Resorts Ltd. (WYNN) is one of the major casino operators, with two casinos in Las Vegas and one in Macau. The stock carries a forward PE ratio of 22. It even sports a yield of 1.5%.

Sunday, August 21, 2011

Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

Why did Standard & Poor's lower the rating on United States debt from AAA to AA+, while keeping the AAA rating for France? After all France has higher debt per capita than the US. If the country is that strong, maybe there are some strong companies worth looking into.

Lots of investment opportunities abound with French stocks, and according to the list that was just updated at WallStreetNewsNetwork.com, stocks based in France, there are over a dozen with yields in excess of 1.5%.

For example, Sanofi-Aventis (SNY) is the Paris based pharmaceutical company which has products that include Plavix, Ambien, Allegra, and Nasacort. The stock trades at 14.5 times current earnings with a forward price to earnings ratio of 7.4. The yield is decent 3.9%.

France Telecom (FTE) is the largest telecom company in France and the third largest in Europe. The stock has a price to earnings ratio of 10.6 and a forward PE of 7.7. The yield is an incredible 8.1%.

Veolia Environnement S.A. (VE) is a conglomerate involved in four businesses: water and wastewater services, environmental services, energy services, and bus, train, and ferry transportation services. The PE is 36.5 with a forward PE of 7.8. The yield is a nice 9.7%.

To see all of the high yield French stocks that trade on US exchanges, which you can download, sort, and update, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

Saturday, August 20, 2011

After Standard & Poor's downgraded the United States debt from AAA to AA+, investors have been looking to the countries with AAA ratings. Here are the countries with ratings of AAA according to Standard & Poor's.

China's vice president Xi Jinping believes in the economic future of the United States, after meeting with vice-president Joe Biden. Other attendees at the meeting included executives of General Motors Co., Coca Cola Co., Caterpillar Inc., Bank of China Ltd., and Lenovo Group. But the big question is, do US investors have confidence in China?

Many investors willing to take a chance on investing in China stocks are picking ones that pay dividends, which can help to reduce risk by returning capital faster and may reduce volatility. There are plenty of bargains out there as China stocks have dropped significantly over the last few weeks. The iShares FTSE China 25 Index Fund (FXI) has dropped over 32% since August 1.

As an example, PetroChina Co. Ltd. (PTR) has been paying dividends since 2000, and pays twice a year also, most recently in May and September. This producer of oil and natural gas has a forward price to earnings ratio of 7.8 and pays a yield of 4.2%.

Another China company with a long term track record of paying dividends is China Petroleum & Chemical Corp. (SNP), which has been paying semi-annually since 2001. This oil, gas, and chemical company has a forward PE of 5.1 and yields 4.2%.

Tuesday, August 16, 2011

Whatever happened to the American Stock Exchange? The exchange started in the 1800's with a group of traders standing outside the New York Stock & Exchange Board, "on the curb," trading speculative stocks. New York Curb Market Agency was created in 1906 and was later known as the New York Curb Market in 1911. The name was changed to the New York Curb Exchange in 1929. The name was changed to the American Stock Exchange in 1953. In 2008, the American Stock Exchange merged with the NYSE Euronext (NYX).

The American Stock Exchange, also referred to as the AMEX, has many stocks which are considered to be more speculative with lower market caps than NYSE stocks, and also trades many closed end funds. Many of these companies provide high dividends according to the free list of high yield American Stock Exchange stocks at WallStreetNewsNetwork.com.

British American Tobacco plc (BTI) is one of the largest companies that trades on the AMEX, with a market cap of $91.6 billion and sports a yield of 2.8%. This marketer of cigars, cigarettes, and pipe tobacco products with brands that include Dunhill, Kent, Lucky Strike, Pall Mall, Viceroy, Kool, and Benson & Hedges, trades at 12.8 times forward earnings. Earnings for the latest quarter were up 22.60% year-over-year on a 1.9% increase in revenues.

National HealthCare Corporation (NHC) is another AMEX traded stock that pays a decent dividend. sporting a yield of 3.6%. The company manages long-term health care centers, assisted living centers, and independent living centers. The stock trades at 15 times forward earnings.

Monday, August 15, 2011

Last Wednesday, August 10, I gave a speech at the MoneyShow on high dividend stocks. I you missed my first two articles on the stocks I covered, you can see them here and here. My goal was to provide high yield stock ideas from various industries including energy, mortgages, inflation protection, real estate, utilities, entertainment, telecommunications, financial, and speculation.

One sector that you wouldn't expect to find high yield stocks is the entertainment field. Shaw Communications, Inc. (SJR), which closed at 20.34 last Wednesday, is in the broadband cable television business and sports a yield of 4.3%. What is really amazing is that it is one of the few straight stocks (not REITs, not CEFs, not MLPs) that pays dividends monthly. Shaw is also involved in Internet services, digital phone services, telecommunications, and satellite direct-to-home services.

The stock trades at 13.2 times forward earnings. Quarterly earnings for the latest quarter ending May 31 were up 23.2% on a revenue increase of 36.1%. The company has excellent dividend coverage; dividends incur $413.76 million in payouts, easily covered by $1.22 billion in operating cash flow.

Alaska Communications (ALSK) is a telecom company that pays an incredibly high yield of 12.1% payable quarterly, and closed at 7.07 last Wednesday. The company is involved in both landline and wireless communications. For the latest quarter, it had quarterly revenue growth of 0.5%, with enterprise revenue increasing 6.9%, and wireless revenue rising 4.9%. ALSK pays out $38.87 million in dividends which are covered by $73.81 million in operating cash flow.

The stock trades at 19.2 times forward earnings, which is a bit on the high side. The population of Alaska continues to grow. From 2000 to 2010, the population of Alaska increased by 13.3% versus 9.7% for the United States overall.

In the financial services industry, there is a high dividend payer that many investors are unaware of. The company is BGC Partners, Inc. (BGCP), which pays 10.3% payable quarterly, and closed at 6.31 last Wednesday. BGC is an interdealer investment broker which offers voice and electronic executions and operates multiple real-time electronic marketplaces.

The company pays out 75% to 85% of earnings and rewarded investors with a 21% dividend increase in May. It has $81.45 million in dividend payouts with $143.19 million in operating cash flow. The stock carries a very favorable forward PE of 7.9.

Earnings should continue to rise as electronic trading is increasing over voice. With electronic trading there are far fewer costs than voice operations. This should generate increased margins. Electronic trading grew by 31% in 2010 year over year.

If you like high dividend stock ideas, check out the numerous lists of high dividend stocks at WallStreetNewsNetwork.com, that can be downloaded, updated, and sorted. Also, stay tuned for upcoming articles on more stocks from the MoneyShow.

Disclosure: Author did not own any of the above at the time the article was written.

Sunday, August 14, 2011

If you missed my previous article on the MoneyShow where I gave a presentation last week, you can see it here. I tried to cover a diversified group of various high income stocks in many different industries.

One area that I covered was inflation proof income stocks. One of the best ways to get inflation protection is from gold and precious metals mining stocks. Unfortunately, investors have only three choices. Goldcorp Inc. (GG) yields only 0.9% but pays dividends on a monthly basis. Because the yield is so low, you would have to invest a significant amount in order to receive a decent monthly dividend check. There is also Hecla Mining preferred B (HL-PB), sporting a yield of 6.5%, payable quarterly. Unfortunately, there is no growth potential.

Finally there is Freeport-McMoRan Copper & Gold (FCX), which closed at 43.50 last Wednesday when I gave the speech. It yield isn't real high at 2.2%, but still beats certificates of deposit. Dividends are paid quarterly. The company produces copper, gold, molybdenum, silver, and cobalt. Revenues for the latest quarter were up an amazing 50.5% year over year, with an outstanding earnings growth of 106%. In 2010, Freeport had its best financial results in the company’s history. In the last five years, revenues have tripled.

In produces 9% of the worldwide mined copper production, with operations in Arizona, New Mexico, and Colorado in the United States, Peru, Chile, Indonesia, and Congo. It has the Grasberg Mining Complex in Indonesia, which has the world’s largest gold reserve, and the world's largest recoverable copper reserve. Overall, the company has 40.0 million ounces of gold, 102.0 billion pounds of copper, 2.48 billion pounds of molybdenum, and 266.6 million ounces of silver.

Another stock I covered was in the real estate field. The company is Realty Income (O), one of the few companies with a one letter stock ticker symbol. This is a Real Estate Investment Trust which yields 5.8%, payable monthly. The stock closed at 30.75 last Wednesday. It has increased its dividend for 16 years in a row and has paid dividends for 42 years. The company has 2,500 properties with an occupancy rate of 96.6%. It leases to over 100 different retail enterprises in more than 30 separate industries, with properties in almost all states.

The leases are typically for 15 to 20 years, usually triple-net leases where the tenant pays the taxes, maintenance and insurance. The properties are usually freestanding buildings in prime locations with good access and visibility. Tenants include Petsmart, Children’s World, Taco Bell, Jiffy Lube, National Tire, AMC Theatres, Boston Market, Rite Aid, La Petite Academy, Sports Authority and Pizza Hut.

The stocks has had an average compounded annual return of 17.8% since it was listed on the NYSE in 1994. The company had maintained property occupancy levels above 96% at the end of each year. No single tenant accounts for more than 10% of total lease revenue. The latest quarterly earnings growth was 26.4%.

An interesting utility is Portland General Electric (POR), which closed at 21.82 when I discussed it last week. The stock yields about 4.6%, and had a 1.9% dividend increase declared in June. Dividends have been increasing every year since 2006. The stock sports a forward price to earnings ratio of 12.2. Revenue for the latest six months grew nearly 4% over the previous year with income increasing 78%.

Earnings should increase this year, primarily due to the 3.9% rate increase in January of this year, which should bring in $65 million. The regulatory climate is improving. The company's capital spending has been declining because major projects have been completed, such as the advanced meter installation and a windfarm.

If you like high dividend stock ideas, check out the numerous lists of high dividend stocks at WallStreetNewsNetwork.com, that can be downloaded, updated, and sorted. Also, stay tuned for upcoming articles on more stocks from the MoneyShow.

Disclosure: Author did not own any of the above at the time the article was written.

Saturday, August 13, 2011

How would you like to participate in this research? The participants were 'forced' to eat chocolate on a regular basis, both white and dark chocolate. According to a recent study by scientists at the University of Reading in the United Kingdom, dark chocolate improved visual function and cognitive performance. Unfortunately for white chocolate eaters, the white chocolate didn't have much effect. The dark chocolate benefits are due to what are called cocoa flavanols.

According to WallStreetNewsNetwork.com, there are several chocolate stocks that may be worth taking a bite out of. Here are a few that sound tasty.

Rocky Mountain Chocolate Factory Inc. (RMCF) is a low cap stock based in Durango, Colorado, which makes and sells caramels, creams, mints, and truffles. The company, which was founded in 1981, has over 300 franchise locations in 40 states, along with Canada and the United Arab Emirates. The stock trades at 12 times forward earnings, and the company pays a delicious yield of 4.4%.

Hershey (HSY) was founded in 1894. It is the largest manufacturer of chocolate in North America and one of the largest chocolate and candy companies in the world. Hershey's Kisses were invented in 1901 and their chocolate chips were brought out in 1928. The stock has forward price to earnings ratio of 17.9, with a scrumptious yield of 2.5%.

The famous Nestle (NSRGY.PK) company sports a forward P/E of 14.8 and yields 3.3%. This Swiss chocolate manufacturer has been around since 1867.

If you want to see a list of all the publicly traded chocolate and candy stocks, go to WallStreetNewsNetwork.com. The list, which includes five companies that pay dividends, can be downloaded, updated, and sorted.

Disclosure: Author did not own any of the above at the time the article was written.

The San Francisco MoneyShow was a great success. During this past week, I gave two presentations on high dividend stocks, one on Wednesday and one on Thursday, did a book signing, and had three videotaped interviews. The original title of my speech was Spotlight on Five Dividend Stocks; however, by the time I presented, I cam up with a few more ideas that I wanted to cover so I ended up changing the name to Spotlight on Several Dividend Stocks.

The first investment I talked about was Kinder Morgan Energy Partners LP (KMP), which is a master limited partnership yielding about 6.5% and was selling at 69.72 per share when I covered it on Wednesday. Kinder Morgan is the largest independent transporter of refined petroleum products, the second largest transporter of natural gas in the U.S., the largest independent terminal operator, the largest transporter and marketer of CO2, the second largest oil producer in Texas, and the only oilsands pipeline serving Vancouver B.C. and Washington state area.

The company has minimal exposure to commodity price volatility due to limited ownership of energy products. As for the CO2 business, the company does own the commodity but hedging is used to reduce price volatility. The company does not have corporate aircraft or corporate sponsorships, nor does it provide sports tickets or executive perks to the officers. KMP is one of the few publicly traded companies that publishes its annual budget on its web site, along with its environmental, and health and safety performance.

As for the head of the company, Richard D. Kinder, he has a salary of $1 per year, and receives no bonus, no stock options, and no restricted stock grants. His compensation is from being a unitholder. KMP's compound average growth rate is 27% since 1996 and the compound average growth rate of distributions is 14% during the same period. The company has met its budgeted payout for ten out of the last eleven years, and for the year that was missed, 2006, the miss was only two cents.

One issue to be aware of with this type of investment is that MLP's send out K-1's instead of 1099's for tax purposes, which means that more time and tax forms will be involved, along with possible additional tax preparation expense from your CPA. One way to get around this is through Kinder Morgan Management LLC (KMR), which is almost identical to KMP except that it pays out its returns in shares instead of stock. It is primarily designed for retirement plans in order to avoid the UBTI or Unrelated Business Taxable Income problem. Ask your accountant before putting any retirement plan money in an MLP.

Another company I talked about was Capstead Mortgage Corp. (CMO), which was trading at 12.47 per share on Wednesday. This government guaranteed mortgage real estate investment trust, also known as a GGMREIT, sports an incredible yield of 14.9%, which it generates by investing in adjustable-rate residential mortgage securities that are issued and guaranteed by government-sponsored entities, such as Fannie Mae & Freddie Mac, and Ginnie Mae, which is an agency of the federal government. This gives the investment an implied AAA rating - oops I mean a AA+ credit rating after the decision by Standard & Poor's.

The high yield is generated through leverage. For the latest quarter ended June 30, 2011 the company had a 17% increase in net income per share from $0.41 in previous quarter to $0.48 for the latest quarter, a 2.55% increase in book value, and a 22% increase in net interest margins. For the last ten years, CMO's total return was 585%.

On a year over year basis, net income per common share for the quarter increased by 37%, and cash dividends per share increased by 33%. As a REIT, a 1099 would be issued.

If you like high dividend stock ideas, check out the numerous lists of high dividend stocks at WallStreetNewsNetwork.com, that can be downloaded, updated, and sorted. Also, stay tuned for upcoming articles on more stocks from the MoneyShow.
Disclosure: Author did not own any of the above at the time the article was written.By Stockerblog.com

Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

Thursday, August 11, 2011

In the last five days, the iShares MSCI Canada Index Fund (EWC) basically broke even. However, the S&P 500 dropped almost 4%. It is not just this mini-market crash where Canada has outperformed. Canada has withstood the banking crisis and housing crisis much better than the US. For income investors looking for diversification, our neighbor to the north has over a dozen stocks with yields in excess of 3% according the free list of top yielding Canadian stocks at WallStreetNewsNetwork.com that was recently updated.

Canadian National Railway Company (CNI) has a network of about 20,600 miles of track that spans Canada and middle America, from the Atlantic and Pacific oceans to the Gulf of Mexico. It sports a yield of 2% and trades at 13.1 times forward earnings.

TransCanada Corp. (TRP) is a Calgary based oil and gas pipeline company which yields 4.3%. The stock trades at 17 times forward earnings.

Royal Bank of Canada (RY) is one of Canada's major banks, based in Toronto, Ontario and yields 4.4%. The stock trades at 9.4 times forward earnings.

Rogers Communications Inc. (RCI), a Toronto based communications and media company, yields 4% and trades at 11.2 times forward earnings. The company has increased dividends every quarter since 2008.

For a list of over fifteen high yield Canada stocks, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

This video, created by The Daily Show with Jon Stewart, puts a humorous spin on a true but terrible story about a couple who received a foreclosure notice from a major bank, even though they didn't have a mortgage with the bank. As a matter of fact, they paid cash for the house.

They got help from a rookie lawyer who had only been practicing for eight months, sued the bank, and won, and showed up at a branch office to take assets (Furniture, computers, etc.) in order to satisfy their claim against the bank.

Monday, August 08, 2011

Some investors believe that low priced stocks are the best ones to invest in during a market crash because they can have the biggest percentage upside when the market recovers. Other investors think that sticking with the large caps is the way to go in case market bottom is missed by investing too soon, the loss won't be as bad. And yet others think you should just stay out of the market until we are absolutely, positively in a bull market, in order to avoid any further loss.

My opinion? Buy income stocks that pay decent dividends with a great payout history; companies such as Johnson & Johnson (JNJ) and Target Corp. (TGT). If the market keeps dropping, at least you will still be receiving income, getting your capital returned to you. If you are lucky and you have picked the exact bottom, your stocks will go up and you will still receive income. If the market stays flat, you will still receive income. It's a win, win, win situation.

Now you just have to narrow down your investment choices to the ones with a solid dividend track record. According to WallStreetNewsNetwork.com, there are over 20 stocks that have increased their dividends for over 30 years in a row. An example would be Abbott Laboratories (ABT), which has increased its dividend 38 years in a row. The stock trades at 9.6 times forward earnings. Speaking of earnings, the company reported a 50.4% increase in quarterly earnings year-over-year on a 9% increase in revenues. The company is currently generating a payout rate of 3.8%.

PepsiCo Inc (PEP) has had a similar dividend increase history. The company boosted its earnings by 17.6% for the latest quarter, with a 13.7% rise in sales. The stock trades at 13 times forward earnings, and yields 3.2%.

Want more ideas? Wal-Mart Stores (WMT) has increased dividends 36 years in a row, Archer-Daniels-Midland (ADM) 35 years, and Family Dollar Stores (FDO) 34 years. For a free list of over 20 stocks that have bumped up their dividends for more than 30 years in a row, including a couple that have increased over 50 years in a row, go to WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.By Stockerblog.com

Sunday, August 07, 2011

The Stockerblogger will be giving two speeches at the San Francisco Money Show this week at the San Francisco Marriott Marquis, on Wednesday, August 10, and Thursday, August 11. The speech will be related to income stocks.

Registration for the conference is still available - FREE! However, they are now taking registrations at the San Francisco Marriott. All you need to do is visit the registration desk and they can assist you with your FREE registration.

Saturday, August 06, 2011

I am currently reading the book Guide to Investing in the Apocalypse by James Altucher and Douglas R. Sease. The book has an entire chapter on the emerging fresh water crisis. The book describes how 40% of the world's population will be without adequate clean water within nine years, according to estimates made by the United Nations. The authors provide several stock ideas in this industry which would be a play on dwindling supplies of fresh water, many of which pay a decent dividend, such as the desalination company Consolidated Water Co. Ltd. (CWCO), currently sporting a yield of 3.6%.

Desalination, also known as desalinization and desalinisation, could be one of the leading industries in the next decade, along with the water purification business. Siemens (SI) and General Electric (GE) have water desalination divisions that make up a small part of their businesses, and according to the list of water purification and desalination stocks at WallStreetNewsNetwork.com, there are over twenty companies involved in the treatment of water, and a dozen with yields ranging from 1% to over 4%.

Consolidated Water Co. Ltd (CWCO) is one of the purest plays in the sector. It operates seawater desalination plants and other water services in the Cayman Islands, the Bahamas, Belize, the British Virgin Islands, and Bermuda, using reverse osmosis technology to convert seawater to drinkable water. The stock trades at 15 times forward earnings. The company has raised its dividend in eight of the last ten years.

Another company on the list that is also covered in Altucher's book is Flowserve (FLS), a manufacturer of heavy duty pumps and provider of water treatment services. The stock has a forward price to earnings ratio of 9.3 and pays a yield of 1.4%.

One other appearing on both sources is Mueller Water Products, Inc. (MWA), trading at 12.8 times forward earnings and providing investors with a yield of 3.2%. The company is in the business of water infrastructure and flow control products.

To access a free list of all the stocks involved in desalination and purification, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.Disclosure: Author did not own any of the above at the time the article was written.

Due diligence is not just a process, it is also a reality test -- a test of whether the factors driving the deal and making it look attractive to the parties are real or illusory. Due diligence is not a quest to find the deal-breakers but a test of the value proposition underlying the transaction to make sure that the inside of the house is as attractive as the outside. Once the foundation has been dissected, it can either be rebuilt around a deal that makes sense or allow the buyer to walk away and prevent the consummation of a deal that doesn't make sense.

Overall, the due diligence process, when done properly, can be tedious, frustrating, time-consuming, and expensive. Yet it is a necessary prerequisite to a well-planned acquisition, and it can be quite informative and revealing in its analysis of the target company and its measures of the costs and risks associated with the transaction. Buyers should resist the temptation to conduct a hasty "once over," either to save costs or to appease the seller. Yet at the same time, they should avoid "due diligence overkill," keeping in mind that due diligence is not a perfect process and should not be a tedious fishing expedition. Like any audit, a diligence process is designed to answer the important questions, and ensure with reasonable assurance that the seller's claims about the business are fair and legitimate.

Proper due diligence involves knowing:

- where to look- what to ask- what tools to use- who to ask- how to test premises/answers- who should ask

Effective due diligence is both an art and a science.

The art is the style and experience to know which questions to ask and how and when to ask them. It's the ability to create an atmosphere of both trust and fear in the seller, which encourages full and complete disclosure. In this sense, the due diligence team is on a risk discovery and assessment mission, looking for potential problems and liabilities (the search), and finding ways to resolve these problems prior to closing and/or to ensure that risks are allocated fairly and openly after the closing.

The "Art" of Due Diligence:

- Understanding how to extract key information from a person or situation- Understanding the objectives of the parties and the underlying transaction- Identifying key hurdles and risks- Identifying why information might be falsified or omitted- Targeting the proper sources for disclosure of information

The science of due diligence is in the preparation of comprehensive and customized checklists of the specific questions to be presented to the seller, in maintaining a methodical system for organizing and analyzing the documents and data provided by the seller, and in quantitatively assessing the risks raised by those problems discovered in the process.

The "Science" of Due Diligence:

- Do your homework- Be prepared and well-organized- Be precise in your requests- Be persistent in your quest for the truth- Don't accept the first answer as the final answer

Author BioAndrew J. Sherman, is the author of several books, including The AMA Handbook of Due Diligence, Harvesting Intangible Assets, Mergers and Acquisitions from A to Z, Raising Capital, and Franchising and Licensing. He is a partner in the Washington, D.C. office of Jones Day and a top-rated Adjunct Professor in the MBA and Executive MBA programs at the University of Maryland. An internationally recognized authority on the legal and strategic aspects of business growth, he is frequently called upon by the media to share his expertise. He has been featured or quoted in The Wall Street Journal, USA Today, The New York Times, BusinessWeek, Fortune, Investor's Business Daily, Forbes, Entrepreneur, U.S. News & World Report, and other prestigious publications.For more information please visit http://www.amacombooks.org/book.cfm?isbn=9780814413821

Friday, August 05, 2011

American's worst fears have taken place. The rating agency Standard & Poors has just dropped the rating for United States Government bonds from AAA to AA+, for the first time in history. Yes France still has a AAA rating even though France has a much higher debt per capital ratio than the United States.

With the US markets crashing, most European markets in turmoil, Japan stagnating, and other areas of the world suffering due to the worldwide recession, where is an investor to turn? The Swiss franc is skyrocketing, while the currency for the rest of Europe is tanking. Since Switzerland is known for its neutrality, stability, security, and bank secrecy, maybe it is time to take a closer look at companies from a country that has been independent since 1291.

Here are some Swiss securities worth looking into. All of the stocks pay dividends except one, and all the dividend payers pay annually.

One such stock is Swisscom AG (SCMWY.PK), the largest telephone company in Switzerland, which has a yield of about 5% based on its latest annual dividend payment. The stock trades at 11.6 times forward earnings, and is traded on the Pink Sheets.

Credit Suisse Group (CS), one of the famous Swiss banks and the second largest in Switzerland, has a very favorable forward P/E of 6 and a Price Earnings Growth ratio of 0.8. (Remember: the lower the PEG the better the buy.) The stock yields 4.4% and trades on the NYSE.

Like chocolate? Nestle SA (NSRGY.PK) is a multinational packaged food company especially known for chocolate. It has a forward P/E of 14.6 and a PEG on the high side of 3.61. The stock yields 3.1% and trades on the Pink Sheets.

Syngenta AG (SYT) is in the business of seeds and crop production. It sports a P/E ratio of 18. The stock yields 2.5% and trades on the NYSE.

UBS AG (UBS) is Switzerland's other big bank. It's the second largest bank in Europe and is the world's largest manager of private wealth assets. It has a forward P/E of 13.

Novartis AG (NVS) is a developer and marketer of pharmaceuticals and health care products; its divisions also include Animal Health, Gerber, and CIBA Vision. One of its subsidiaries is Sandoz, inventor of LSD and manufacturer of saccharin. It has a forward P/E of 18 and a PEG of 1.3. The stock yields 1.7% and trades on the NYSE.

Roche Hldg. (RHHBY.PK) is the large pharmaceuticals and diagnostics biotechnology company. It has a forward P/E of 3.8.

ABB (ABB) is in the power and automation technology industry. It has a P/E of 11.1 and trades on the NYSE.

Logitech International SA (LOGI) ia the famous manufacturer of mice and other peripheral and personal interface devices for personal computers. It has a forward P/E of 9.9. The stock does not pay a dividend and trades on NASDAQ.

For free lists of more European stocks, go to WallStreetNewsNetwork.com, where the lists can be downloaded, sorted and updated.

Disclosure: Author did not own any of the above at the time the article was written.

The united States has always had the highest rating for its bonds and notes as far as I am aware, always had a AAA rating from Moody's and Standard and Poor's. Now according to an ABC report, a US government official said that the government is now expecting a downgrade on its bonds from AAA status to either AA+ or AA.

Have you heard about the new Bernie Madoff movie that is coming out next month? It is all about how Harry Markopolos said that he tried to warn government regulators for nine years about Bernie Madoff's ponzi scheme, yet Madoff continued to operate.

Thursday, August 04, 2011

Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

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